Succession Planning Insights

CEO succession is a defining moment for any family-owned business. Family businesses account for more than 70% of global GDP, making leadership transitions critically important. In my latest article, co-authored with Avinash Goyal, Dr. Chaitali Mukherjee and Supriya Kamath, we explore how poorly managed transitions can erode both shareholder value and a family's legacy, while the most successful transitions act as catalysts for growth and renewal.   After analyzing 200 publicly traded family businesses and surveying 170 private family-owned businesses, we found that top-performing family-owned businesses (FOBs) excel through eleven key practices: five foundational and six distinctive. Foundational steps, such as evaluating multiple candidates and managing the transition as a project, set the stage. Distinctive practices, such as aligning family successors' roles to their strengths, anchoring non-family CEOs in the family's values, and empowering successors to think and act like owners, can make all the difference. Notably, when these practices are in place, revenue and EBITDA margins can rise by around four percentage points over five years post-succession.   What's striking is that transitions to family CEOs, when carefully managed, can deliver outsized returns, bucking the industry trend of post transition value erosion. The best transitions are treated as a long-term journey, often spanning 8 to 15 years, focused on leadership development, clear role definition, strong governance, and pragmatic planning.   How can family businesses turn a moment of risk into a springboard for renewal? Read more in our latest article 👉 https://lnkd.in/dQkcjrwH   #FamilyBusiness #Leadership #SuccessionPlanning #McKinsey

49 #FMCG CEOs have already exited their roles in 2025. The number feels high until you zoom out and see the full picture: 1,504 CEO departures across industries through August, the highest on record since tracking began in 2002. For consumer goods companies, this isn’t just a headline. It’s a warning signal. I spend my days speaking with boards, founders, and C-suite leaders, and the same theme keeps coming up: “Our succession plan looks fine… until it suddenly doesn’t.” Here’s the real tension I’m seeing in FMCG right now: 45 of the top 50 CPG companies promote CEOs from within, yet many emerging leaders haven’t had true C-suite exposure. Meanwhile, the pool of external candidates who understand global FMCG, PE pressure, omni-channel complexity, and category dynamics is getting smaller, not bigger. So companies are facing a perfect storm: • More exits • Shorter tenures (7.4 years on average at departure) • A younger cohort of CEOs (23 of 50 leading CPG CEOs have <3 years in role) • And leadership pipelines that aren’t keeping pace with business transformation The organizations navigating this moment well have one thing in common. They’re not reacting to turnover. They’re preparing for it. They’re giving high-potential leaders real P&L exposure before they “need” it. They’re pairing emerging commercial leaders with mentors who sit two levels above them. They’re treating succession like a strategic asset, not a board-meeting agenda item. And yes, they’re partnering with specialized search firms who understand how FMCG talent actually moves, not just how it looks on paper. The next leadership transition is always closer than it seems. If you’re leading a team today, ask yourself: Do you have a bench of ready-now successors, or are you relying on hope and tenure to hold things together? It’s a good moment for boards to look honestly at their pipelines, before turnover makes the decision for them. #ceo #cpg #fmcg #ceoexits

Executive Directors are typically evaluated on outcomes, which is important. But what if they were also evaluated on what no longer depends on them? Nonprofit Boards of Directors tend to evaluate the Executive Director on visible results like revenue, programs, and growth. But those metrics miss something more foundational to mitigating risk. 𝙄𝙨 𝙩𝙝𝙚 𝙤𝙧𝙜𝙖𝙣𝙞𝙯𝙖𝙩𝙞𝙤𝙣 𝙗𝙚𝙘𝙤𝙢𝙞𝙣𝙜 𝙡𝙚𝙨𝙨 𝙙𝙚𝙥𝙚𝙣𝙙𝙚𝙣𝙩 𝙤𝙣 𝙤𝙣𝙚 𝙥𝙚𝙧𝙨𝙤𝙣 𝙩𝙤 𝙛𝙪𝙣𝙘𝙩𝙞𝙤𝙣? I think this signals a huge success metric, and is at the heart of effective succession planning. When I work with nonprofit leaders, along with the typical goals, we track "independence indicators:" • Decisions that once required their constant input are now successfully made at the appropriate level • Relationships that were concentrated with one individual are now distributed across the team • Priorities that existed informally are now clearly documented, shared, and known • Processes that depended on individual memory are now captured, defined, and repeatable • Work that once stalled during absences now continues with consistency and clarity • Succession planning is a regular, normal point of discussion in board meetings Because it's vital that you build an org that wins with or without 𝘵𝘩𝘪𝘴 𝘱𝘢𝘳𝘵𝘪𝘤𝘶𝘭𝘢𝘳 leader. It's a huge risk to concentrate relationships, knowledge, and context in one person. 𝗤𝘂𝗶𝗰𝗸 𝗲𝘅𝗲𝗿𝗰𝗶𝘀𝗲 𝗳𝗼𝗿 𝘆𝗼𝘂𝗿 𝗻𝗲𝘅𝘁 𝗯𝗼𝗮𝗿𝗱 𝗺𝗲𝗲𝘁𝗶𝗻𝗴:  Rate your org on a 1-8 scale for "Can it run without this particular Executive Director?" Discuss one fix. #NonprofitBoard #SuccessionPlanning #NonprofitLeadership

CEO succession is the ultimate test of a family business. McKinsey & Company has published new research examining why: “Passing the baton: Creating value through CEO succession at family businesses”. The stakes for CEO transition in family-owned businesses are significant. With family-owned businesses generating more than 70% of global GDP, and employing 60% of the global workforce, strategic CEO succession planning has implications far beyond individual companies. CEO succession in family-owned businesses is not merely about protecting shareholder value. It safeguards the family’s vision, reputation, and legacy - while enabling institutional renewal. The challenge is navigating the delicate balance between continuity and transformation, heritage and innovation. Unlike non-family businesses, the journey is significantly more personal for family businesses, with implications for the family’s reputation and legacy. What distinguishes family business transitions is not only governance complexity - but emotional intensity. Identity, stewardship, and ownership are intertwined. That makes preparation not optional, but existential. The McKinsey & Company research identifies 11 critical practices that underpin growth and resilience during CEO transitions in global family businesses. These include five foundational practices that establish the base for an effective leadership transition, and six distinctive practices that top-performing businesses use to achieve exceptional outcomes. From identifying and preparing potential successors to equipping the chosen leader for a seamless transition, thoughtful planning is essential. It protects the family’s vision while catalyzing institutional renewal - allowing each family business to design a succession journey tailored to its unique needs. CEO succession is never a single event. It is a multi-year strategic process that tests governance, ownership alignment, and family dynamics. For business families, family business boards, and next-generation leaders, this research is essential reading. Explore the full insights authored by Dr. Chaitali Mukherjee, Avinash Goyal, and Acha Leke with contributions by McKinsey colleagues: https://lnkd.in/eS_SdnZD Be Bold. Be Daring. Be Different! #FamilyBusiness #SuccessionPlanning #LeadershipTransition #Governance #CEO #McKinsey

Succession Planning (Done Right!) May Be Indian VC’s Biggest Risk With 1,000+ funds managing $170B+ in VC capital, the biggest unspoken risk in our industry might not be bad bets—but what happens when leadership transitions fail. And as more funds mature, this risk is only growing. Venture capital is about the future. We bet on founders who will define it. But are we, as an industry, preparing for our own future? 🤔 Because leadership transitions in VC are uniquely complex: 🔹 Founder-led firms are hard to “handover”—success is deeply tied to personal brands & networks. The founding partner is the brand. 🔹 Performance cycles are long—unlike annual corporate targets, evaluating mid-level leaders takes years. Small firms, unstructured HR—promotions often happen based on relationships, not institutionalized systems. 🔹 LP trust & fundraising risk—many LPs back firms based on founding partners; poorly managed transitions can trigger capital flight. 🔹 Carry structures are fixed and opaque, making economic transition difficult without friction. Meanwhile, the industry is shifting: ✨ Fund mortality is getting real — Kauffman Foundation study (2012) revealed that only 5% of VC firms in the U.S. survived beyond three fund cycles, Indian data is sparse though 📈 New funds are emerging—2024 alone saw 50+ new venture funds in India, many led by ex-partners of older firms. ⚡ Founders are choosing investors who “get them”—the next generation of VCs will be built by those who innovate, not just inherit. Succession planning isn’t just an issue for legacy firms—the assumption that succession is a “late-stage” problem is dangerous. Succession is not about naming a successor. It’s about building a firm that can outlast its founders. That design begins on Day Zero. Some firms are tackling this head-on. But as an industry, we need to be more deliberate. The best VC firms don’t just fund the future—they build one for themselves. Thoughts?! 👇 #venturecapital #leadership #successionplanning

The CEO succession debate often revolves around strategy, vision, and charisma. But increasingly, boards are looking to CFOs to fill the top seat. Do you also see that? The question is no longer whether finance leaders can become CEOs, but what it takes for them to ascend to the role. This final post in our series, The Making of a Modern CFO, explores the shifting dynamics, capabilities, and career pivots that prepare CFOs for the CEO role. Drawing on research from Spencer Stuart, McKinsey, Egon Zehnder, and Bain, we unpack what distinguishes CFOs who make the leap and those who don’t. This isn’t about filling a pipeline. It’s about redefining readiness. Boards and executive teams are rethinking what it means to lead, especially amid economic uncertainty, digital disruption, and talent scarcity. CFOs, who sit at the nexus of strategy, performance, and capital, are uniquely positioned to step forward. But only if they evolve. Historically, the CEO role went to operators, marketers, or founders, people with outward-facing, visionary gravitas. CFOs, by contrast, were seen as guardians: analytical, cautious, precise. Today, the best CFOs are rewriting that script. They are shaping strategy, inspiring confidence, and building enterprise leadership muscle well beyond the numbers. In this article, we examine what it takes to make that leap, not just the resume milestones, but also the mindset shifts, cross-functional fluency, and visibility that define a CEO-in-waiting. And we explore what today’s CFOs can do to begin that journey, long before the top job opens. ⸻ 🧑💼 Partner at Business Partnering Institute 🆘 Need help strengthening your finance team? Let’s talk. 🤝 We help finance teams increase their influence and impact. 🔔 Follow me for more CFO insights and hit the bell to stay updated. 📘 Order our new book: https://bit.ly/4h2P9AA 🧑🎓 Take our LinkedIn course: https://bit.ly/4a5fB9l 📻 Listen to the #FinanceMaster podcast: https://bit.ly/3NLSt73 📺 Subscribe on YouTube: https://bit.ly/4bSBut6 📢 Join our WhatsApp channel: https://bit.ly/3WWGOrc 📄 Explore our templates and cheat sheets: https://lnkd.in/eC_zuCU4

🚨 CEO Succession: The #1 Governance Blind Spot 🚨 Despite being one of the board’s most sensitive and high-stakes responsibilities, too many boards still stumble when it comes to CEO succession. This is one of the key findings of a recent joint study of the Center for Executive Succession and HR Policy Association (HRPA) A recent study highlights 10 of the biggest pitfalls — and the results are sobering: 1. 41% of CEOs hesitate to engage in succession planning — stalling momentum, morale, and candidate development 2. Most boards only begin planning 12–18 months before a transition — far too late to prepare a CEO-ready successor 3. Only 58% of boards align their CEO profile with future strategy — meaning the wrong leader is chosen for the company’s next chapter 4. Succession discussions are often too shallow — more ritual than rigorous debate 5. Executive transitions are poorly managed — risking reputation, investor confidence, and leadership stability 💡 The research makes one point crystal clear: 👉🏼  A trusted CHRO is often more critical to the process than the CEO. When empowered & trusted, CHROs: ✔️ Reframe succession as strategy, not an exit plan ✔️ Provide objective, future-focused talent insights ✔️ Ensure continuity and minimize disruption during leadership transitions The paradox? The CHRO is essential to CEO succession — but only if they are truly trusted by the board, the CEO, & the executive team ⚡ My humble take: CEO succession isn’t just about replacing a leader. It’s about safeguarding the company’s future, honoring legacies, and protecting stakeholder confidence. Boards that treat it as a compliance exercise rather than a strategic imperative risk being caught unprepared — with consequences that echo far beyond the C-suite But don't take my word for it. Take it from a previous client of mine. The Co-CEO of a beverage company stepped into a family CEO succession that was table stakes for the business. She described our working together as follows: “I stepped into my first Co-CEO role about a year ago and selected Navid as my executive transition coach. Whilst this was a big new role for me, we made a lot of progress. As a result of our year-long engagement, I can wholeheartedly say that I got many insights and value for the time that we spent together. Navid’s thoughtful approach meant that at times, we deviated from the Double Diamond Framework of Executive Transitions to spend time on a more urgent or emergent topic. Navid’s coaching was always helpful, and I appreciate the insight and sustainable behaviour shifts that were created during our time together.” #MasteringExecutiveTransitions #Leadership #CHRO #Governance #CEO #SuccessionPlanning #BoardEffectiveness

The first thing that hit me when I joined this mid-sized engineering company as a CHRO was the lack of structured #SuccessionPlanning. At an organizational growth rate as steep as it was, the importance of a robust #SuccessionStrategy to keep our growth momentum on track and ensure continuity in leadership was very clear. To this end, I initiated my work with a critical review of our current leadership structure, #TalentPools, and future organizational requirements. I met senior leaders and key #stakeholders to identify critical roles for which #SuccessionPlans should be developed. This review identified several gaps and potential risks. Some of the huge barriers were #ResistanceToChange. To many senior leaders, succession planning was an unnecessary complication rather than a strategic necessity. Secondly, our #TalentManagementSystem lacked the necessary analytics to effectively predict and plan for the #leadership needs of the future. The next challenge in the process was to make the process inclusive and unbiased. We did not only need a system that would identify the #FutureLeaders, but one that would also be fair and transparent in the development of their capacity. Knowing these challenges, we established a comprehensive #SuccessionPlanningFramework that includes both quantitative and qualitative tools. #TalentAssessmentTools: We used #PsychometricAssessments, performance reviews, and 360-degree feedback to assess the current leader in finding a successor. Tools like #HoganAssessments and #GallupStrengthsFinder helped us truly understand individual capabilities and suitability for future roles. #LeadershipDevelopmentPrograms: Based on assessment results, customized development programs for potential successors have been designed. This includes #mentorship, #coaching, and focused training sessions to get over the shortcomings in competencies and groom them for the leadership role. #SuccessionPlanningSoftware: We implemented succession planning software in the HR system— #SAPSuccessFactors and #CornerstoneOnDemand. These tools enabled us to track potential successors, review development progress, and evaluate succession readiness. It runs scenario planning and #SuccessionModeling to simulate organizational changes and what would be affected in such scenarios. Our succession planning strategy, therefore, bore its first benefit: a strong #LeadershipPipeline ready for the challenges ahead and improved employee engagement through clear career pathways. It also enhanced the organizational agility required for smoother transitions. Our organization is more resilient, with a strategic approach toward developing leaders that places us in good stead for the future. #CHRODiaries #SuccessionPlanning #LeadershipPipeline #HighPotentialEmployees #PerformanceAssessment #360DegreeFeedback #ChangeManagement #CareerProgression #EmployeeEngagement #StakeholderBuyIn #OrganizationalGrowth

Succession in the Age of AI: Are you building a proper Legacy pipeline? I’ve spent the last few days reflecting on a critical gap in 2026 strategies. While many HR professionals and executives are obsessed with their AI Roadmap, their Succession Pipeline is being left behind, either outdated or simply forgotten. The truth is: You can’t automate legacy. Across Latin America, I have seen the same pattern: organizations are hyper-focused on "AI-driven efficiency" while neglecting "Human-driven Continuity." We are preparing systems to replace tasks, but we aren't preparing humans to lead those systems. In my "1% AI Trap" post from two weeks ago, I mentioned a hidden side effect: The Talent Hollow. If you cut mid-level management to save costs via AI, who is going to be your next CEO in 5 years? You are effectively burning the bridge to your own future. Succession in 2026 isn't about "who is next on the org chart." It’s about Architecture: - Mentorship vs. Monitoring: If senior leaders are only monitoring AI outputs instead of mentoring human judgment, your pipeline is dying. - The "Shadow" Pipeline: Your next great leader isn't the one who uses AI the most; it’s the one who understands how to maintain Culture when 50% of the work is automated. - Discernment as a Core Competency: We need to stop developing "General Managers" and start developing "Chief Context Officers." As I look at the regional landscape, the companies that will survive the next decade aren't those with the best LLMs. They are the ones where the current leadership is actively "de-risking" the future by investing in people who can lead through Culture Dissonance. Are you developing successors, or are you just managing a headcount that’s waiting for the "AI take over"? At the end of the day, a company without a human succession plan isn't a business; it's just an algorithm waiting for a glitch. #Leadership #SuccessionPlanning #CultureStrategy #FutureOfWork #LatAmBusiness #HumanCapital